This Insider Has Just Sold Shares In Baumart Holdings Limited (ASX:BMH)

By
Simply Wall St
Published
February 26, 2021
ASX:BMH
Source: Shutterstock

Some Baumart Holdings Limited (ASX:BMH) shareholders may be a little concerned to see that insider Jojo Krisnawan recently sold a substantial AU$2.9m worth of stock at a price of AU$0.14 per share. That diminished their holding by a very significant 91%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Baumart Holdings

The Last 12 Months Of Insider Transactions At Baumart Holdings

In fact, the recent sale by Jojo Krisnawan was the biggest sale of Baumart Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of AU$0.18, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 91% of Jojo Krisnawan's stake.

In total, Baumart Holdings insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:BMH Insider Trading Volume February 26th 2021

I will like Baumart Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Baumart Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Baumart Holdings insiders own 61% of the company, worth about AU$16m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Baumart Holdings Insiders?

An insider sold Baumart Holdings shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Baumart Holdings is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Baumart Holdings has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course Baumart Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

If you’re looking to trade Baumart Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.